NAMAKKAL: The wholesale egg price in Namakkal touched a record Rs 6.45 per piece on Wednesday, the highest level ever seen in Tamil Nadu’s poultry industry. The steep jump of 55 paise in a single week is primarily linked to rising feed expenses alongside steady consumer demand. Retail egg prices also increased. “An egg was sold for Rs 7.50 in our shop until Wednesday. It will soon reach Rs 8,” said M Jamaan, a grocery shop owner in Salem.
Farmers Welcome Price Hike
Farmers maintain that the rise is fair, pointing to feed inflation as their biggest cost pressure. “We are finally seeing prices that reflect our costs. Without this, many farms would have shut down,” said K Saravanan, a Namakkal poultry farmer. According to the National Egg Coordination Committee (NECC), egg rates have long fluctuated depending on seasonal buying patterns and changes in feed costs. During 2021, winter demand lifted prices to Rs 5, while the avian flu concern in 2022 drove them down to Rs 3.70. As markets recovered after the pandemic in 2023, prices settled near Rs 5.20, and mid-2024 saw a limited increase to Rs 5.70. Prices reached Rs 6.40 in June last year.
Fundamental Shift in Pricing
“The present Rs 6.45 level, however, suggests a more fundamental change, indicating sustained cost pressures rather than a short-term seasonal swing,” said NECC chairman K Singaraj, hinting that the egg rate may go up to Rs 7 in the coming days. Traders caution that if prices stay high for long, household demand could fall further and worsen nutrition outcomes for lower-income communities.
Impact on Exports
In 2024, India’s egg exports were valued at US$76.4 million, placing the country 10th worldwide. “Namakkal, widely regarded as the nation’s poultry hub, is central to this export activity. Still, the current rise in domestic prices could weaken India’s ability to compete abroad,” said Dr PV Senthil, an exporter. Price-sensitive customers in the Middle East and Southeast Asia may shift orders to lower-priced sources such as Turkey if Indian prices remain high, he added. Senthil explained that high domestic prices make it difficult to honor contracts abroad. “Unless feed costs stabilize, we risk losing market share,” he added.
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